Heated Profits: How Adani Power Yielded 185% Returns In Just 6 Months

Published by Trinkerr Academy on

If you had invested ₹1 lakh in Adani Power in January 2022, you could have had ₹2.85 lakhs in just 6 months. This multibagger gave its investors 185% returns. Here’s a closer look at the company.

💡 Stock: Adani Power


⚡ About The Company
Adani Power, a part of the diversified Adani Group, is India’s largest private thermal power producer. The company and its subsidiaries sell the power generated from these projects under a combination of long-term Power Purchase Agreements, short-term PPA and on a merchant basis.

It started out as a power trading company in 1996 and has since won many awards and recognitions. In 2017, it was named the Most Innovative Young Power Professional by the Independent Power Producers Association of India (IPPAI). In 2018, it received recognition for Best Environment Management practices by Srishti Publications.

⚡Reasons for its Sudden Spike
▪️ The company shot up by over 20% in May after index provider Morgan Stanley Capital International (MSCI) included Adani Power in its global index.

▪️ The electricity demand is strong in India, driven by economic growth and a heatwave in the north-western parts of the country during peak summer months.

▪️ The company saw a rise of 68% in its revenue and a 50% rise in net profits, and its operating profits rose by 271% YoY in Q4 of FY22.

📈 Growth Potential
▪️ It has delivered good profit growth of 34.28% CAGR over the last 5 years.

▪️ It has a high promoter holding of 74.97%.

▪️ It has tied hands with TotalEnergies of France to jointly create the world’s largest green hydrogen ecosystem.

Categories: Multibaggers


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